Each lot owners’ consent is required for any DA relating to the ‘whole’ strata scheme

Under the new Part 10 strata renewal provisions in the Strata Schemes Development Act 2015 (SSDA 2015) there is no special power given to an owners corporation to lodge a development application over all lots.

‘Collective Sale’ has been a property buzzword in 2016 – state and local government zoning changes, together with the changes that the Strata Schemes Development Act 2015 now bring, make collective sales a hot topic right now.

The Strata Schemes Development Act 2015 and the Strata Schemes Development Regulation 2016 commenced on 30 November 2016. One of the most important reforms effected by the act is the urban renewal mechanism contained in Part 10, which may permit the collective sale or redevelopment of strata schemes, without unanimous agreement of lot owners being required. We are already encountering developers and lot owners pushing forward with proposals, with a view to moving quickly when the act comes into force.

One of the most important reforms effected by the act is the urban renewal mechanism contained in Part 10, which may permit collective sale redevelopment of strata schemes, without unanimous agreement of lot owners being required. We are already encountering developers and lot owners pushing forward with proposals, with a view to moving quickly when the act comes into force.

Buying a strata unit “off the plan”, before it has been built, has long been common.

As compared with buying an existing property, there are many potential benefits,e.g. good pricing offered by developers needing to satisfy finance requirements, potential capital gain during the period between signing the contract and settlement, possible government first home buyer assistance, flexibility regarding floor plan and inclusions and more time to arrange your affairs before moving.

This is a submission from Bannermans Lawyers addressing a number of issues raised in the discussion paper, based on our experience acting for community associations, lot owners, managing agents and contractors in relation to community scheme transactions and disputes.

Owners and developers of strata units considering renovations or subdivisions need to consider whether council approval is required. Failure to obtain a required approval can have serious consequences, including penalties, upgrade or demolition orders and prejudice to insuring, leasing, mortgaging or selling the property in the future.